Jaiannah DeMello is an associate at RE/MAX Vantage, focusing on southeastern Massachusetts and Rhode Island, recently listing the most expensive home on the market based on square footage in Portsmouth for $5.25 million.
DeMello has been a full-time agent for nearly three years. Born and raised in Fairhaven, Mass., she earned a bachelor's degree in counseling psychology from Johnson & Wales University, then worked as a teacher's assistant for children with intellectual disabilities before embracing her lifelong dream of working in the real estate industry.
PBN: You recently listed the highest-priced home per square footage in Portsmouth, 95 Devin Drive. What's it been like listing and selling such luxury homes in Rhode Island, in terms of the challenges and the upside?
DEMELLO: Listing luxury homes is most certainly both more rewarding and more challenging. In the non-luxury sector, most buyers are local residents moving because they need to and have a fixed budget they are working in. In the luxury sector, the pool of potential buyers is much smaller, many of them aren't local and there is no necessity driving most buyers to put in an offer, just interest in living in coastal New England and having their desired amenities. Getting someone's attention a thousand miles away is not the goal for most typical homes, but it is necessary working in the luxury market.
PBN: What are out-of-state buyers looking for when searching luxury summer homes in Rhode Island? And how many out-of-state buyers are you seeing this year?
DEMELLO: With interest rates being tighter, purchasing power is most certainly lower, slowing traffic even in the luxury market. We are appealing to the 1% – the 1% gets even smaller when the cost of borrowing goes up.
Coastal proximity and privacy seem to be the driving factors in interest. For millions of dollars, luxury buyers’ expectation is that they won’t have to do anything except move in and that all amenities will be on-site. Gyms, saunas, pools, etc., become the expectation as the market has tightened.
The clients looking aren’t tied to one ZIP code for summer homes, so the home needs to stand out on a national scale. Rhode Island is competing with the Hamptons and Nantucket.
PBN: In an age when more buyers are using online platforms for self-service, why is it important for first-time homebuyers in particular to reach out to a certified agent before they start their search?
DEMELLO: There is so much room for error in many transactions. There seems to be a misconception that attorneys can do it all – but they can't, and they don't want to.
Establishing a relationship with someone who is credible and can guide you through the process can be the difference between getting your dream home or ending up in court and losing money. The internet can help educate some buyers, but there is a plethora of misinformation, making it a tool but not a substitute for a professional.
PBN: With such low inventory, what can buyers do to set themselves up for success and be able to find a home that's suitable for them given all the competition?
DEMELLO: Work with an agent – a substantial amount of inventory never even sees Zillow. Talk to your friends, find an agent you trust. Find one that belongs to a reputable company with an expansive network. While we sell a product, we are a relationship-based and people-based business. If your Realtor has a solid network, your chances of finding what you want and getting your offer accepted with minimal competition is higher. They carry more weight than you’d think.
PBN: What's your reaction to the settlement reached by the National Association of Realtors to resolve claims brought by home sellers, in terms of the impact it will have on you and other Realtors around the country who will have to abide by the terms of the settlement?
DEMELLO: The settlement hasn't changed anything in our line of business. Commissions always have been negotiable, which seemed to be the purpose of the lawsuit. The market is changing and that will force more inexperienced and part-time buyers agents out of the market than the terms of the settlement.
For some time, the market has been oversaturated with Realtors. If it’s going to be sink-or-swim, it will be a testament to those who stick with it. It will force all of us to step up our game. Steel sharpens steel, so I’m looking forward to working in a market with more qualified agents instead of inexperienced agents.
National Association of Realtors membership is no longer a requirement for RE/MAX offices, so the only change I foresee in day-to-day operations specifically due to that is no longer having to be a member.
Marc Larocque is a PBN contributing writer. Contact him at Larocque@PBN.com. You may also follow him on Twitter @LaRockObama.
